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Technological Determinants of Trade

In: Contemporary Economic Issues

Author

Listed:
  • Gene M. Grossman

    (Princeton University)

  • Elhanan Helpman

    (Tel Aviv University)

Abstract

International trade flows are guided by a variety of forces, including tastes, technologies, factor endowments, and domestic and foreign policies. Early classical writers emphasized cross-country differences in technological capabilities as the principal cause of trade. But models focusing on disparities in factor endowments came to dominate thinking about international trade in the twentieth century, following the seminal writings of the Swedish economists, Eli Heckscher and Bertil Ohlin. Interest in the technological determinants of trade came back into vogue in the 1980s, with the emergence of a ‘new trade theory’, and even more so in the early 1990s, when this theory became a building block for the ‘new growth theory’.

Suggested Citation

  • Gene M. Grossman & Elhanan Helpman, 1998. "Technological Determinants of Trade," International Economic Association Series, in: Daniel Cohen (ed.), Contemporary Economic Issues, chapter 1, pages 3-22, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-26084-3_1
    DOI: 10.1007/978-1-349-26084-3_1
    as

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